Grasim seeks removal of excise duty on viscose fibre

Aditya Birla Group firm Grasim Industries, a leading producer of viscose staple fibre, has sought a "fibre neutral" policy from the government by removing 12.3 per cent excise duty levied on viscose fibre as its rival cotton industry is exempted from such levy.
"We have been telling them (government) from last 5-6 years that there should be a similar kind of excise duty for all kind of fibre. We are asking them for a fibre neutral policy," Grasim CMO Rajeev Gopal told PTI.
The company is sensing a good opportunity with its viscose staple fibre and garments in the global markets, where it is competing with suppliers from China, Turkey and Indonesia.

"Viscose fibre would grow and we are at least looking for a double digit growth in the Indian market. Export would also grow similarly," he added.
Viscose fibre-based garments are primarily purchased by developed markets such as US and Europe, while fibre mainly goes to countries like Bangladesh, Pakistan, Indonesia and Turkey.
"Wherever there is spinning, we are exporting," he added.

In 2015-16, Grasim Industries reported consolidated revenue of Rs 7,656 crore (USD 1.17 billion) from viscose staple fibre, up 15.24 per cent from Rs 6,643 crore in the previous fiscal.
The company today opened its first art studio in Noida through its fashion fabric brand Liva, where it would exhibit over 1,000 fabrics of viscose from its LIVA Accredited Partner Forum (LAPF).

"We would soon have a similar studio in New York, where we would showcase the work of our partners," Gopal said.
Besides New York, the firm has plans to introduce art studio concepts to other textiles clusters like Jaipur and Bengaluru.
"We will have many of these because the idea is to first test how it works. We are quite confident and if it turns out well, then we would have at major centers as Bengaluru, Jaipur and Tirupur in South. There are so many," he added.
LAPF is the first of its kind platform in the textile fraternity that connects and builds a network of textile professionals.

LAPF studio connects over 650 garment manufacturers and exporters, over 50 local and international brands, 50 international buying houses, agents and traders and 100 fashion design houses.